Local officials support coastal measure

Published: Wednesday, July 3, 2013 at 6:29 p.m.

Last Modified: Wednesday, July 3, 2013 at 6:29 p.m.

Local elected officials are endorsing an amendment that passed the U.S. House in June that would double the yearly revenue cap on offshore oil and gas revenue Louisiana receives for coastal projects.

The amendment, attached to the Offshore Energy and Jobs Act of 2013, would increase the cap from $500 million to $1 billion.

The provision would dedicate 100 percent of that money to coastal restoration and hurricane protection, said its author, U.S. Rep. Bill Cassidy, R-Baton Rouge.

“Lifting the arbitrary dollar cap on offshore revenue and directing the Department of Interior to produce the federal guidelines on revenue sharing, which the Obama administration has been delaying, is critical for laying the groundwork that will enable the state of Louisiana to bring forward the value of this revenue stream to fund essential projects in the near term,” said Cassidy, whose district includes northern Terrebonne and Lafourche.

The revenue cap was set under the 2006 Gulf of Mexico Energy Security Act. That law calls for the federal government to share 37.5 percent of energy production royalties with Gulf Coast states. The revenue-sharing portion of the act takes effect in 2017, and the money the states receive is capped at $500 million a year combined.

Cassidy’s amendment would increase the cap to $1 billion starting in 2023. It would also require the federal government to start giving Louisiana and other Gulf states the 37.5 percent share starting this year.

The overall energy bill, however, is considered unlikely to pass in the Senate, and the Obama administration has threatened to veto it, according to multiple media reports. Many Democrats have said they are concerned about the bill’s expansion of oil drilling off the Atlantic and Pacific coasts.

Meanwhile, backers of the amendment at the local and state levels say they hope Cassidy’s measure wins final approval.

Garret Graves, chairman of the Louisiana Coastal Protection and Restoration Authority, said the amendment is a substantial improvement to the offshore energy sharing program.

“Once enacted, this change will allow for significant improvements in protecting communities from hurricanes and restoring our coast,” he said. “We strongly urge the Senate to take advantage of this momentum.”

Sen. Norby Chabert, R-Houma, explained that the amendment is important to rebuilding Louisiana’s coast, which provides access points for energy and shipping commerce.

“An eroding coast and continually deteriorating barrier islands are the front lines to protecting those access routes,” he said. “It’s critical that we have the resources to rebuild our coast, protect our low-lying communities from storms and continue to help grow America’s economy.”

State Rep. Gordon Dove, R-Houma, said marsh creation and bank stabilization to improve barrier island creation is imperative for the state and for the nation.

Cassidy’s office released statements from several other local lawmakers and coastal advocates supporting his amendment, including state Reps. Lenar Whitney, R-Houma, and Dee Richard, a Thibodaux independent, and Simone Theriot Maloz, executive director of Restore or Retreat.

Cassidy is a candidate in the 2014 Senate race against Sen. Mary Landrieu, D-La. Landrieu, who sponsored the 2006 law creating the offshore revenue stream for energy-producing states, has introduced Senate legislation to allow Gulf states to immediately share in the increased revenue rate.

<p>Local elected officials are endorsing an amendment that passed the U.S. House in June that would double the yearly revenue cap on offshore oil and gas revenue Louisiana receives for coastal projects. </p><p>The amendment, attached to the Offshore Energy and Jobs Act of 2013, would increase the cap from $500 million to $1 billion.</p><p>The provision would dedicate 100 percent of that money to coastal restoration and hurricane protection, said its author, U.S. Rep. Bill Cassidy, R-Baton Rouge.</p><p>“Lifting the arbitrary dollar cap on offshore revenue and directing the Department of Interior to produce the federal guidelines on revenue sharing, which the Obama administration has been delaying, is critical for laying the groundwork that will enable the state of Louisiana to bring forward the value of this revenue stream to fund essential projects in the near term,” said Cassidy, whose district includes northern Terrebonne and Lafourche.</p><p>The revenue cap was set under the 2006 Gulf of Mexico Energy Security Act. That law calls for the federal government to share 37.5 percent of energy production royalties with Gulf Coast states. The revenue-sharing portion of the act takes effect in 2017, and the money the states receive is capped at $500 million a year combined.</p><p>Cassidy's amendment would increase the cap to $1 billion starting in 2023. It would also require the federal government to start giving Louisiana and other Gulf states the 37.5 percent share starting this year.</p><p>The overall energy bill, however, is considered unlikely to pass in the Senate, and the Obama administration has threatened to veto it, according to multiple media reports. Many Democrats have said they are concerned about the bill's expansion of oil drilling off the Atlantic and Pacific coasts.</p><p>Meanwhile, backers of the amendment at the local and state levels say they hope Cassidy's measure wins final approval.</p><p>Garret Graves, chairman of the Louisiana Coastal Protection and Restoration Authority, said the amendment is a substantial improvement to the offshore energy sharing program.</p><p>“Once enacted, this change will allow for significant improvements in protecting communities from hurricanes and restoring our coast,” he said. “We strongly urge the Senate to take advantage of this momentum.”</p><p>Sen. Norby Chabert, R-Houma, explained that the amendment is important to rebuilding Louisiana's coast, which provides access points for energy and shipping commerce.</p><p>“An eroding coast and continually deteriorating barrier islands are the front lines to protecting those access routes,” he said. “It's critical that we have the resources to rebuild our coast, protect our low-lying communities from storms and continue to help grow America's economy.”</p><p>State Rep. Gordon Dove, R-Houma, said marsh creation and bank stabilization to improve barrier island creation is imperative for the state and for the nation. </p><p>Cassidy's office released statements from several other local lawmakers and coastal advocates supporting his amendment, including state Reps. Lenar Whitney, R-Houma, and Dee Richard, a Thibodaux independent, and Simone Theriot Maloz, executive director of Restore or Retreat.</p><p>Cassidy is a candidate in the 2014 Senate race against Sen. Mary Landrieu, D-La. Landrieu, who sponsored the 2006 law creating the offshore revenue stream for energy-producing states, has introduced Senate legislation to allow Gulf states to immediately share in the increased revenue rate.</p>